Union Gas studying potential of redeveloping fuel station into multi-fuels and energy facility

UNION Gas Holdings said on Wednesday that it is working with Surbana Jurong to study the potential of redeveloping its fuel station at Old Toh Tuck Road into a multi-fuels and energy facility, which it claims would be Singapore's first.

In particular, Union Gas and Surbana Jurong will study the feasibility of adding sustainable energy delivery, storage methods and solutions to the site. These may include renewable solar and micro wind energy solutions, battery storage systems and electric vehicles charging stations.

Another option may be implementing a natural gas-based power generation station supported by existing transmission pipeline and subsequent export to the power grid.

Union Gas and Surbana Jurong Infrastructure, the Surbana Jurong unit appointed as exclusive project development partner, are expected to conclude the study and make recommendations within the next six months.

The study comes as the lease for the fuel station is due to expire in December 2023. Union Gas also said it believes that the concepts relating to sustainable energy are complementary to its existing business of supplying fuel products, such as liquefied petroleum gas, piped natural gas and diesel, to customers.

Said Teo Hark Piang, Union Gas' executive director and chief executive: "This collaboration is part of our strategic plan to diversify and enhance our existing business by keeping an eye on the future needs of our customers.

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"In order to remain relevant and viable as a provider of fuel products and to create value for our stakeholders, it is imperative that we heed the call for cleaner and more sustainable energy sources and support the move towards vehicles that rely less and less on fossil fuels."

Shares of Union Gas closed down 9.21 per cent at S$0.69 on Wednesday before the announcement.